Page 2249 - Week 07 - Thursday, 16 June 1994

BORDER WAS CHARGING 108% PER ANNUM UNDER THIS MEASURE,

THIS WILL NEVER OCCUR IN THE A.C.T.

THIRDLY, MADAM SPEAKER THE BILL ESTABLISHES A FINANCIAL

COUNSELLING TRUST FUND. THE A.C.T. CREDIT TRIBUNAL WILL NOW BE

ABLE TO ORDER CREDIT PROVIDERS WHO BREACH THE ACT TO PAY A

PENALTY TO A FINANCIAL COUNSELLING TRUST FUND.

THE FINANCIAL COUNSELLING TRUST FUND MONIES WILL BE USED TO

ASSIST CONSUMER CREDIT COUNSELLING, CREDIT AND DEBT

MANAGEMENT EDUCATION, CONSUMER CREDIT RESEARCH,

CONSUMER CREDIT LITIGATION AND OTHER CREDIT-RELATED

ACTIVITIES.

MADAM SPEAKER, THE BILL ALSO INCLUDES SOME TECHNICAL

AMENDMENTS REQUIRED TO CLARIFY THE LEGISLATION. FIRSTLY, I

HAVE ADDRESSED THE CONCERN RAISED BY THE SCRUTINY OF BILLS

COMMITTEE TO ENSURE THAT SECTION 241A (WHICH DEALS WITH

EXEMPTIONS FROM THE CIVIL PENALTY REGIME) OF THE CREDIT ACT

1985 HAS ITS INTENDED EFFECT AND THAT IT APPLIES TO CONTRACTS

MADE AFTER 28 FEBRUARY 1985, THE DATE THE CREDIT ACT 1985

COMMENCED.

FURTHER, THERE IS A TECHNICAL AMENDMENT TO CLARIFY THE

MEANING OF THE TERM "FINANCIAL INSTITUTION" WITHIN THE

CREDIT ACT SO THAT THE TERM INCLUDES FOREIGN CREDIT UNIONS

AND BUILDING SOCIETIES. THE PURPOSE OF THIS AMENDMENT IS TO

ENSURE THAT ALL CREDIT UNIONS AND BUILDING SOCIETIES,

REGARDLESS OF WHERE THEY ARE FORMED, ARE EXEMPT FROM

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